GEICO is taking aggressive action against medical f
irms in Florida and New York, accusing them of leading multimillion-dollar
, no-fault auto insurance fraud schemes.
In a lawsuit filed this month in federal court in Tampa, GEIC
O charged that AJ Therapy Center and its principals had submitted and received more than $4.6 million in f
raudulent personal injury protection insuranc
e claims for unnecessary medical treatments.
In multiple examples over the last few years, the clinic misrepres
ented the extent of injuries from auto accidents, despite police reports s
howing little damage to vehicles and no serious injuries, according to t
he complaint that seeks compensatory and punitive damages.
In federal court in Brooklyn, GEICO filed a similar lawsuit agains
Watch More Image Part 2 >>>
t Droz Medical Supply, GB Medical Supply and the firms’ leadership. The complaint alleges that the companies collected
more than $835,000 in insurance payments for medically unnecessary durable medical equipment and pre
scription medication.
“The fraudulent equipment is alleged have been provided to individuals who claimed to have been involved in
automobile accidents in New York and eligible for coverage under no-fa
ult insurance policies issued by GEICO,” the complaint reads.
The defendants “intentionally made the above described false a
nd fraudulent statements and concealed material facts in a calculated effor
t to induce GEICO to pay charges submitted through Droz Supp
ly that were not compensable under New York No-Fault insurance laws,” the suit notes.
The New York suit asks for compensatory and punitive damages.
The named defendants in both lawsuits have not yet filed answers to the complaints.